Afriqua Gaz has granted an 18 million dollar loan to the British company Sound Energy to finance the development of the first phase of the natural gas production project in Tendrara. This debt financing runs until 2033.
In a press release, Sound Energy announced that it had concluded agreements with Afriquia Gaz on December 24 concerning a debt financing of 18 million dollars (167 million dirhams) of the first phase of Tendrara LNG maturing in December 2033. At a rate of 6%, this loan is guaranteed on the share capital of Sound Energy Meridja Limited surcussale au Maroc de Sound Energy, which can be used by the company in full or in installments over a period of three years from December 24. 2021, and will be assigned to the development of the Tendrara production concession, it is specified.
Sound Energy will pay the interest quarterly, but it will be deferred and capitalized semi-annually until the second anniversary of the conclusion of the loan agreements, then annually in equal installments starting at 7 years from the date of signing of the loan agreements. “The conditions precedent to the loan include a project contract with Italfluid Geoenergy Srl (Italfluid) for the supply of a gas treatment and liquefaction facility related to the development of phase 1”.
“We are delighted to have completed all of the loan memo documentation which ensures that Sound Energy will be fully funded for its share of the Phase 1 development capital. This is a key milestone for the company and we will now move on to issuing the notice of prosecution to Italfluid and to drawing the initial financing of the Afriquia Gaz loan in order to proceed with the execution of phase 1 of development”, welcomes Graham Lyon, executive chairman. by Sound Energy.
